Analyst Slams Jokowi's Petroleum Fund  

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  • Petugas pengisi bahan bakar melayani pembelian bahan bakar jenis baru Pertalite di SPBU Lempuyangan, Yogyakarta, 14 Agustus 2015. TEMPO/Pius Erlangga

    Petugas pengisi bahan bakar melayani pembelian bahan bakar jenis baru Pertalite di SPBU Lempuyangan, Yogyakarta, 14 Agustus 2015. TEMPO/Pius Erlangga

    TEMPO.CO, Jakarta - NH Korindo economist Reza Priyambada criticized President Joko Widodo’s idea to set up a petroleum fund as ineffective.

    “The government pitched too many ideas without real implementations,” Reza told Tempo on Friday, September 18, 2015.

    Jokowi proposed that 5 percent of the non-tax state revenue of Rp 330 trillion (US$23.5 billion) over the last three years should be allocated for the Petroleum Fund. It means, there would be Rp 16 trillion (US$1.1 billion) to be allocated annually for the Petroleum Fund.

    Reza proposed that the Directorate General of Oil and Gas should manage the fund. According to Reza, the fund can be invested in any sector provided with strong legal basis. However, he suggested that the fund should be deposited at state-owned institutions.

    “The fund can be deposited as debt papers (sukuk) or government debt (SUN),” Reza.

    Meanwhile, LBP Enterprises analyst Lucky Bayu Purnomo viewed the idea positively, as saying that the impact would be favorable in the long run. According to Lucky, the fund must be invested in cross-border instruments operating in the energy industry.

    “For instance, [the fund should be invested] at ETF (Exchange Traded Fund) in the energy industry,” Lucky said.

    MAYA AYU